The following table gives Foust Company's earnings per share for the last 10 years. The common stock, 6.8 million shares outstanding, is now (1/1/22) selling for $64.00 per share. The expected dividend at the end of the current year (12/31/22) is 50% of the 2021 EPS. Because investors expect past trends to continue, g may be based on the historical earnings growth rate. (Note that 9 years of growth are reflected in the 10 years of data.)

a. Calculate Foust's after-tax cost of debt. Round your answer to two decimal places.

b. Calculate Foust's cost of common equity. Calculate the cost of equity as r_s = D₁/P₀ + g. Do not round intermediate calculations. Round your answer to two decimal places.

c. Find Foust's WACC. Do not round intermediate calculations. Round your answer to two decimal places.

\begin{tabular}{cccccc} Year & EPS & & Year & EPS \\ \cline { 1 - 2 } \cline { 5 - 6 } 2012 & $3.90 & & 2017 & $5.73 \\ 2013 & 4.21 & & 2018 & 6.19 \\ 2014 & 4.55 & & 2019 & 6.68 \\ 2015 & 4.91 & & 2020 & 7.22 \\ 2016 & 5.31 & & 2021 & 7.80 \end{tabular}